GIH Shari'a Board has reviewed the basis of Zakat calculation. The Board confirms that the explanation under Section 1 and 2 below are in conformity with the rules of Islamic Shari'a principles.
Ramadhan 1443H May 2022
1) Zakat Payable by Shareholders of GIH
According to GIH's Shari'a Board, Zakat should be calculated annually. Moreover, Zakat obligations that result from changes in GIH's assets and liability positions are to be carried entirely by GIH's shareholders. GIH only pays Zakat on reserves and retained earnings which remain for one fiscal year. Zakat calculation method changes as investment objectives change as illustrated below:
Held for Trade: if shares are held for trade, investors must pay Zakat based on the market value of their investments as on the Zakat date. The Zakat rate is 2.5% for Hijri calendar or 2.5775% for Gregorian calendar.
Held for Income Producing: if shares are held for income producing purposes, Zakat obligation will equal to the number of shares held by a shareholder multiplied by the Zakat per share.
GIH's Zakat per share is the residual amount of GIH's net Zakatable assets divided by the number of outstanding shares.
As on Dec 31, 2021, GIH Zakat per share was (2.522 fils per share)
History GIH Zakat
2021/12/31
2020/12/31
2019/12/31
Zakat amount
1,025,182
841,446
898,355
Zakat paid on Reserves
0
0
0
Net Zakat
1,025,182
841,446
898,355
Shares Outstanding
406,495,660
406,495,660
406,495,660
Zakat per Share
0.002522
0.00207
0.00221
2
Zakat Guide
2022
2) Zakat Payable by Shareholders of Affiliate Companies
Companies Subsidiaries and Associated
Company
Listed /
Zakat per Share
Original Currency
Unlisted
Kuwaiti Fils
Zakat per Share
Currency
Mada'in Real-Estate Co
Unlisted
0.25
0.0031
AED
Gulf Real-Estate
Unlisted
-
-
-
Majan Development
Unlisted
2.7
0.00336
OMR
Additional Notes
1. Gulf Real Estates pays the entire Zakat on behalf of its shareholders.
Example
A shareholder of GIH holds 100,000 shares as on Dec 31st 2021. The purpose of his/her investment is to make capital appreciation and receive dividends. The Zakat per share for this investor should be calculated as follows:
Total Zakat payable = Number of Shares held * Zakat per share = 100,000 * 0.002522= KD 252.2
3
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Gulf Investment House KSCC published this content on 05 September 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 September 2022 10:49:09 UTC.
Gulf Investment House KSCP is a Kuwait-based investment company. The Company is primarily engaged in investment activities, and related financial and advisory services in accordance to Islamic Sharia principles. It operates through two segments: Investment segment includes managing direct investment and investments in subsidiaries and associates, as well as Real estate segment comprises managing trading and investment properties. The Company's management and advisory services include conducting the fundamental and technical analysis and receiving cash and stock dividends on behalf of the client's, among others. It serves in Gulf Cooperation Council countries and in the Unites States.